What Happens at Close of Escrow in California
Close of escrow is the finish line of your sale. Here's what happens in the last days, and in what order.
Last updated November 2026
What "close of escrow" means
Close of escrow is the day the grant deed is recorded. Your purchase agreement sets the target date.
The last week
Final walkthrough. The buyer visits the home before closing.
Signing. Buyer and seller sign their escrow documents. Escrow prepares an estimated closing statement before signing.
Loan documents back to the lender. The buyer's signed loan documents go back to the lender for review.
Funding. The lender funds the loan.
Funding vs. recording
The close follows a set order:
- The lender funds the loan.
- Documents go to the county recorder.
- Recording is confirmed.
- Escrow disburses funds (seller proceeds, payoffs, commissions) and prepares the final closing statement.
Source: Old Republic Title
When a new loan pays off old ones, the title company often receives the loan funds, pays off the prior loans and liens, and sends the rest to escrow. It charges a sub-escrow fee for this (WFG Title).
When you get the keys and when the seller gets paid
When possession transfers is set in the purchase contract. Your agents coordinate the keys.
The seller is paid when escrow disburses funds, after recording is confirmed.
What can delay closing
- Loan approval or appraisal issues
- Missing documents or signatures
- Late payoff demands
- Title issues
- Repair negotiations
A lender must deliver a written payoff statement within 21 days of a written request, and the fee is capped at $30, with FHA and VA loans excepted (Civil Code §2943).
Close of escrow FAQ
What does close of escrow mean?
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Close of escrow is the day the grant deed is recorded with the county recorder.
What's the difference between funding and recording?
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Funding is when the lender sends the loan money. Recording is when the county records the documents. The lender funds first, then the documents record.
When does the seller get paid?
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After recording is confirmed, escrow disburses funds, including the seller's proceeds, payoffs and commissions.
When do I get the keys?
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When possession transfers is set in your purchase contract. Your agents coordinate the keys.
Ready to open escrow?
This guide is general information, not legal or tax advice. Customs vary by county, and every cost is negotiable in your purchase agreement.